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Netflix could lose 750,000 UK subscribers as Disney takes control of hit shows | netflix




Netflix is ​​facing a fight to prevent up to 750,000 UK subscribers from defecting as rival Disney regains sole control of hits such as Modern Family, How I Met Your Mother and Sons of Anarchy to bolster its own service.

The streaming company, which last week predicted the lowest number of new global subscribers in the first quarter since 2010, lost UK rights to five popular Disney+ titles this month, with more expected to follow.

Analysts at research firm Digital i estimate the loss of titles which also include Prison Break and New Girl, with Homeland set to follow soon, could cost Netflix UK up to $90 million a year if all 750,000 subscribers followed their favorite shows. and leave.

Their report identified this core group of users as being at high risk of churn, as much of their viewing was for these shows.

Viewing of these six titles, five of which have already left Netflix, has been strong in the UK, said Ali Vahdati, founder and chief executive of Digital i. This means that a significant number of subscribers will start to question their Netflix subscription and turn to the new home of their favorite content, Disney+.

The UK is fast approaching Netflix’s peak, last year recording the lowest number of new subscribers since its launch a decade ago.

Digital i estimated that Disney-licensed content accounted for about 12% of Netflix’s most popular content viewing during the first quarter of last year, with the company removing nearly all of its top-ranking titles ever since. UK.

Modern Family was the most-streamed Netflix show in Europe in 2020, said Vahdati, who felt the show’s loss could have the biggest impact, with nearly 270,000 subscribers considered die-hard fans. Our previous research showed that more than half of Netflix top views were too high [Hollywood] studio content.

As the streaming wars escalate, Netflix is ​​expected to spend more than $17 billion on content this year, a quarter increase from 2021. The focus will increasingly be on creating productions originals as it attempts to replace third-party licensed TV shows and movies. parts with its own content.

Last week, Netflix highlighted upcoming fare such as Ryan Reynolds’ sci-fi flick The Adam Project and the return of hit series Bridgerton and Stranger Things as attractions that would help it attract and retain subscribers. .

At the same time, it increased the price of its monthly subscriptions in Canada and the United States, its biggest market. UK subscribers saw prices rise last March as the company seeks to fund its content budget in the face of ever-increasing spending by rivals.

Netflix is ​​still the UK’s most popular streaming service, with around 14 million subscribers at the end of last year, ahead of Amazon at 12.3 million and Disney+ at 4.7 million, according to Ampere Analysis.




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